Pricing and margin management
More products fail due to bad pricing than all the marketing elements put together.
Price is a powerful commercial lever, with small changes having a significant impact on the bottom line – for better or worse.
We develop pricing models to evaluate how market shifts and pricing changes impact the bottom line.
We help clients understand the market and competitive dynamics that affect pricing decisions.
We help our clients develop pricing strategies to address the pricing pressures facing them in today’s market environments, and also provide a roadmap for growth.
At the same time, promotions often introduce management complexity and fail to deliver the planned incremental profit.
We work with clients across a range of consumer sectors to address a broad spectrum of pricing topics.
These can include the price repositioning of a business line or category, product and service pricing, price image, promotional effectiveness, net price and discounts, core and ancillary product pricing, price list, and target setting.
Our typical pricing engagements have yielded 5–10 percentage points of margin improvement for high-volume lower-profitability product categories, and significantly more than this in higher-profitability categories.